ChallengeA major European wireless/mobile service provider was experiencing revenue leakage problems in its customer-to-cash process. It suspected that the problems arose in the interfaces among Sales, Provisioning, Billing and Collection, Network, Fraud, and Security, but was unable to identify root causes with confidence. The client had engaged several other consultancies in the past, but nothing had improved. The client sought TMNG Global’s assistance in identifying the problems and providing practical, targeted solutions.
TMNG Global Solution
TMNG Global Europe assigned a very senior and experienced operational team and embarked on an aggressive assessment program. Within three weeks, 35 one-hour, disciplined interviews had been conducted, along with a thorough examination of every management and system report produced by the operator. Supported remotely by the TMNG Revenue Assurance practice group, the on-site team delineated more than 140 recommendations for improvement.
Unlike previous consultants, we understood that the company did not have the capability to implement even a fraction of the recommendations. We also were aware that, while improving Revenue Assurance was a key goal for this client, the drive to maintain revenue growth was also strong. Therefore, our team proposed a way of balancing the two competing drives.
Our final recommendations focused around four key areas: cost reduction, cash collection, fraud reduction, and revenue integrity. We found that considerable time and monies were wasted in a very inefficient order process and, thus, we devised solutions in this area that could be implemented quickly. A collections program that was inadequate for the volume of customers and debt in query were given a better sense of reality. TMNG Global Europe also developed a programmed response to fraud alarms, along with a step-by-step program for improving billable events capture, mediation, and reconciliation.
Benefits to the Client
A conservative estimate of the annualized revenue increase our client realized as a result of implementing our proposed solutions was 2.1 percent; the optimistic estimate, 5.2 percent. The payback period on the client’s investment in our services was measured in weeks. Furthermore, TMNG Global Europe has been engaged to assist the client in actualizing further potential benefits found in the assessment phase.
With the application of our revenue assurance and business process expertise, the client changed its self-perception as a “bleeder” (that is, a leaker of revenue) to that of a “leader” in the area of Revenue Assurance. It discovered that it could immediately implement our recommendations, with the result that in a tight budgetary situation, our approach was self-funding. TMNG Global Europe was able to succeed where other consultancies had failed because of our practical, hands-on knowledge, who understood what could be realistically accomplished in a client’s given environment.
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